Diana Olick of CNBC recently wrote an article that sums up the reason for frustration for many home buyers and sellers in the South Sound region. Olick notes,

“Housing demand is rising rapidly, but a key cog in the wheel to homeownership is in deep trouble. The people most needed to close the deal are disappearing. Appraisers, the men and women who value homes and whom mortgage lenders depend upon, are shrinking in numbers.

That is causing growing delays in closings, costing buyers and sellers money and in some cases even scuttling deals.

The share of on-time closings has dropped from 77 percent last April to 64 percent today for loans backed by Fannie Mae and Freddie Mac, according to Campbell/Inside Mortgage Finance. Appraisal-related issues in these delays jumped by 50 percent in that time.” (Read the full article here)

Our advice to our buyers and sellers is to factor in a minimum of 2-3 additional weeks time from what we would consider a normal 30 day closing. It’s important to note that it’s become an even bigger problem for specialty properties such as waterfront, luxury and historic homes and for properties located in outlying areas such as southern Pierce and Thurston counties. With lenders being forced to pay premiums for appraisals, we’re hopeful it will lead to more qualified appraisers being attracted to enter the field. However, that transformation will not happen quickly enough to satisfy those of us that counsel home buyers and sellers every day.

Tacoma was recently featured in a report by KIRO-7 news' Kevin McCarty. McCarty notes,

"Tacoma has always been a beer town… and these days business is booming". "Several independent craft beer makers are reviving the city’s historic brewery district. Craft breweries large and small are popping up in and around the city's historic brewery district along Pacific avenue in roughly the same area that once housed three large brewers a century ago. Heidelberg, Columbia and the original Pacific breweries once operated very close to an area now seeing an explosion of beer makers. From 19th street to south 55, large independent breweries are up and running or in the works with several small micro-brewers also dotting the area. Recently Gig Harbor based Seven Seas has announced they'll open a large scale operation after converting an old warehouse near S. 21st and Jefferson streets."

For those of us that love beer and Tacoma… this is certainly a "win-win."

Tacoma recently ranked as number 10 on Trulia’s top 10 housing markets to watch in 2016, a list that also included cities like Grand Rapids, MI, Charleston, SC and Austin, TX (see the full report here). Trulia’s rankings were based on a number of different criteria including strong job growth, low vacancy rates and high affordability. I think high affordability was probably key to Tacoma’s inclusion on the list. Though some of our buyer clients that are new to the Tacoma housing market have commented that prices here are high compared to where they’re coming from, the Tacoma housing market clearly remains a great value proposition when compared to Seattle where the median home price is more than twice as high. As the tech industry continues to grow in Seattle, Tacoma will continue to represent a very attractive alternative to call home. Not surprisingly, we’re seeing more and more folks from Seattle making the move to T-Town. I think it’s that demand in particular that led to our inclusion on Trulia’s list of hot market’s to watch in the coming year. To be clear though, Tacoma’s appeal isn’t just about being within commuting distance of Seattle. For those of us lucky enough to live and work in Tacoma, it actually represents a preferable alternative. A vibrant, livable small city with a big metropolitan hub nearby to visit when the mood strikes.

Sales data for third quarter 2015 are in, and unlike previous years where we've seen a weaking in third quarter in north end home values, this year we've seen the market remain strong. Inventory levels are a incredibly low levels. We expect a slow down due to seasonality in the fourth quarter but all indications are full steam ahead for home values in north Tacoma for the new year. For sales comparisons by zip code please see the information attached below.

According to an article in the Seattle Times, Gene Balk examined recent census data surrounding an emerging trend that points to a shift from King County to more affordable Pierce county.

Gene notes, "It's no secret that newcomers are pouring into King County from around the country and the globe. In fact, we broke a record in 2014 for the number of new arrivals from out of the state, which I wrote about in my last column. But could we also be witnessing the emergence of a countertrend – that of a growing number of folks fleeing pricey King County and heading south to Pierce? New data on U.S. counties, released by the Census Bureau on Thursday, hints that this may be the case." Click here to read Gene's full article.

The reporter's observations certainly support what we as Realtors are seeing here in North Tacoma on a routine basis. Many of our new buyers are people moving to Tacoma from the Seattle area, and our last four North End listings have sold to folks from Seattle. So… what does this trend mean? Well, we're currently seeing an upsurge in prices and a significantly low level of home inventory in North Tacoma. (you can review those trends here). Thats good news if you currently own a home here, but not such good news if you're in the market to buy this spring.

1. Not all old houses are created equal. In my experience, houses built before 1900 were generally more poorly constructed than those built from 1900-1950. The exception to this rule would be what I call the "robber baron" homes. These turn of the century mansions were built with higher quality materials and engineering practices than more modest cottages built at the same time. The grander homes are standing the test of time well. The worker cottages, less so. Smaller Victorian (pre-1900) homes were often built on posts and piers or loose rock/brick and mortar foundations. In some instances, these foundations were later replaced or supplemented with concrete or block foundations, and settling issues are common. This isn't necessarily a deal breaker. Newer technologies allow for the levelling and repair of these foundations without breaking the bank.

2. Old houses aren’t usually insulated. Builders didn't really begin insulating homes until the late teens and early twenties, and even then they generally just added cellulose (paper pulp) to the exterior walls and attics at very low insulating levels. If you’ve ever demolished the ceiling in an older home, you'll know what I’m talking about. You’re probably still discovering bits of the pulverized paper in your hair, ears and clothes. If you’re doing a major remodel to a home, it makes sense to strip off the old interior plaster down to the studs so that the wiring and plumbing can be updated and insulation can be added. If you’re not doing a major renovation, my advice would be to simply add insulation to the attic and underneath the first floor to increase the insulation value as much as possible. Learn more about insulation at energy.gov.

3. Are the mechanical systems up to date? When buying an old house, people often encounter things like knob and tube wiring, galvanized and lead pipes, oil burning furnaces the size of a Winnebago and broken sewer lines. Older systems aren't necessarily a problem, but a thorough pre-purchase home inspection can identify failing systems in need of immediate attention. Be sure to factor the cost of plumbing, electrical and heating system upgrades into the purchase price of a home before you make an offer, and make sure you can afford to repair or replace these systems as it becomes necessary during your ownership.

5. How many layers are on the roof? Many older homes in Tacoma originally had wood shingle roofs with no underlayment to support a modern roof. Over time, home owners have simply shingled over the original roof. If a roof has three layers or more, it's no longer a candidate for re-shingling. The roof will have to be completely torn off, and an underlayment of plywood or particle board will need to be installed before the new roofing material can be added. Tear offs are three times as expensive as simple re-shingling so it's helpful to know how many layers a roof has before writing an offer to purchase an older home.